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Tokyo stocks rise as Renesas jumps on acquisition deal
TOKYO, Sept 11, 2018 (BSS/AFP) – Tokyo stocks gained on Tuesday despite
lingering worries about trade issues, as Japanese semiconductor firm Renesas
surged nearly 4.5 percent after announcing a deal to buy California-based
IDT.
The benchmark Nikkei 225 index rose 1.30 percent or 291.60 points to close
at 22,664.69, while the broader Topix index was up 0.67 percent or 11.30
points at 1,698.91.
“Investors continued buying back shares on the back of brisk corporate
results in both Japan and the US,” said Hikaru Sato, senior technical analyst
at Daiwa Securities.
The weak yen, which helps boost exporters, was also among the positive
factors, Sato said.
The dollar fetched 111.43 yen in Asian afternoon trade, against 111.18 yen
in New York and 110.95 yen in Tokyo on Monday.
“But investor sentiment is not quite solid as concerns over a trade war
are weighing on the market,” Sato told AFP.
SBI Securities also said in a commentary: “With few market-moving events,
it would be difficult to buy actively as uncertainty remains over trade talks
around the United States.”
US President Donald Trump “has suggested taking certain retaliatory
actions if no progress is made in US-Japan negotiations,” it noted.
In Tokyo trade, Renesas soared 4.43 percent to 754 yen after announcing a
decision to purchase IDT in a cash deal valued at $6.7 billion. The deal is
expected to be closed in the first half of next year, following approval by
IDT shareholders and the relevant regulatory authorities, Renesas said.
Game giant Nintendo was up 1.31 percent at 39,150 yen and Sony was 1.44
percent higher at 6,335 yen.
Chip-testing equipment maker Advantest rallied 2.51 percent to 2,447 yen,
reflecting rallies in US high-tech shares.
On Wall Street, the Dow Jones Industrial Average shed 0.2 percent, while
the tech-rich Nasdaq Composite Index advanced 0.3 percent.
BSS/AFP/MR/ 1243 hrs